HSBC calls for Equal Regulation and Adoption of Stablecoins
Share This Article
Europe’s largest bank, HBSC valued at $3 trillion in total assets has backed the central bank digital currency (CBDC) development while maintaining a questioning position on cryptocurrency.
Group CEO Noel Quinn disclosed in an article, indicating the dedication of the firm towards assisting the concept of CBDC. CBDC supplies transparent legal tender to avoid “many risks” associated with cryptocurrencies and stable coins.
According to the piece released on September 21, CBDC efforts like the “new form of digital money,” including forms of stablecoins, “is nothing new.” Quinn said :
“Current commercial bank money is privately created and widely used. But commercial bank money is anchored by central bank money and closely regulated, reflecting its systemic importance”
For the industry to grow further the CEO said that stablecoin and cryptocurrencies need regulation to the extent of associated risks as the industry adoption grows further.
The CEO says that stablecoins and cryptocurrencies need rules the extent of associated risks as the industry adoption grows further.
“Even then, only designs that are sufficiently well anchored to achieve price stability, and correspond with current approaches to financial crime prevention, are likely to be useful as a reliable and safe means of payment”
Emphasis was made by Quinn that HSBC will continue experiencing cross-border payments and the global CBDC development.
He noted that contributions for the CBDC projects banks and other central banks like United Kingdom, France, Canada, Singapore, mainland China, Hong Kong, Thailand and the United Arab Emirates always worked together.
HSBC was among British banks that cut Binance payment channels over important possible risks to its buyers.
The stock business intelligence firm Microstrategy was banished by HSBC has its user policy prohibiting customers from interacting with crypto.
Quinns aim to build private stablecoins by global financial regulators. The United States Securities and Exchange Commission’s chair Gary Gensler called for tougher crypto regulation, at the “Wild West” crypto casino.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.